Charles Dennery



Scientific Collaborator


Tel: +41 21 693 00 76 – Fax +41 21 693 00 60

Personal webpage

CV (pdf)






I am a scientific collaborator at École Polytechnique Fédérale de Lausanne since October 2018. I received my PhD in Economics at the London School of Economics in 2018. Prior to the PhD, I studied Mathematics and Economics in Paris at Ecole Normale Supérieure and the Paris School of Economics.


My research interests encompass macroeconomics and monetary economics, as well as international economics. I have looked at the macro and monetary implications of some trends in the labour market, such as the increased job turnover, and the rise in monopsony power where large firms hold most of the bargaining power when wages are decided. I am also looking at the role of tariffs and exchange rates in an economy with intermediate inputs, and how this can explain part of the Elasticity Puzzle.

  1. Macro and the changing nature of jobs

This project examines some features of the labour market, and their macroeconomic consequences:

  • Job turnover and the slope of the Phillips curve (pdf)


The first paper relates the observed flatter Phillips Curve to the rise in labour turnover and temporary employment. In a New Keynesian model of sticky wages, workers or unions discount future wage income with a low discount factor if there is a strong flow of job turnover. In the New Keynesian wage Phillips Curve, this implies that future inflation is discounted more heavily than without job turnover. In the long run, the Phillips Curve is much flatter, and is no longer vertical or near-vertical; in the middle and long run, the curve appears flatter as turnover creates a bias if it is not accounted for.

  • Monopoly, Monopsony and the Phillips curve (pdf)


The second paper studies the impact of a rise in monopsony in the labour market: wages are set by employers instead of workers/unions. If monopsonistic employers set rigid wages and there is inflation, the fall in the real wage lowers the labour supply. In such a world, inflation is contractionary: this inverts the Phillips curve. The paper then examines a model where employers and employees both have market power, and use it to bargain over wages. The slope of the bargained Phillips Curve depends on each side’s relative power. An increase in employers’ power flattens the Phillips Curve.


  1. Global value chains and international economics

Intermediate inputs and the international elasticity puzzle

With trade in intermediate inputs, exchange rates and tariffs have a different impact on trade. While they have the same impact on the final posted price, their indirect effect on production costs – through imported intermediates – is sizably different, and contributes to the Elasticity Puzzle.